From North America: Embattled phone maker Nokia (NYSE:NOK) saw its share price fall nearly 16 percent Wednesday after reporting its first quarter bottom line will be hit amid stiff competition in the cell phone market.
The news sent Nokia’s stock down 80 cents, or 15.90 percent, dwindling to $4.23 apiece in trade on the New York Stock Exchange.
The Finnish company cited multiple factors that had a negative impact on sales particularly in India, the Middle East and Africa and China, citing "competitive industry dynamics" and gross margin declines in its smart devices unit.
The ailing mobile maker said it estimates that devices and services net sales were 4.2 billion euro, or US$5.5 billion for the first quarter.
Operating margins were about negative three percent, compared to the previously expected breakeven ranging either above or below by two percentage points. It gave no other earnings estimates.
For the second quarter, the company projects operating margin to be similar to or below the negative three percent in the first quarter.
"Our disappointing devices & services first quarter 2012 financial results and outlook for the second quarter illustrates our devices & services business continues to be in the midst of transition," chief executive Stephen Elop said in a statement.
To facilitate this transition, Nokia said it will continue to increase its focus on the range of Lumia models and sales. The company will also lower its cost structure and improve cash flow.
"Nokia will accelerate planned cost reductions and will pursue additional significant structural actions if and when necessary," Elop added.
The company did not provide details about its cost-saving measures.
Earlier this year, Nokia announced 4,000 job cuts and said it will stop assembling cell phones in Europe by 2013 as it shifts production to Asia, where the majority of component suppliers are based, to help it reach markets faster.
Nokia also said earlier today that it had found a glitch in the new Lumia 900 smartphone, which is currently only available in the U.S., and released a software update to patch a memory management problem.
"Lumia has gained market share with both distribution partners and consumers. The Windows Phone ecosystem is also attracting developers and has expanded rapidly with more than 80,000 applications available," the company said.
Nokia dumped its Symbian OS system in favour of Microsoft’s (NASDAQ:MSFT) Windows phone platform last year.
The company said it will report first quarter results on April 19, 2012.